There is some shocking statistic about the number of people worldwide who have never checked their credit report. I can’t remember the exact percentage, but it is atrocious! Here are five reasons to try and persuade you. (I have saved the best until last)
Verify that the Information Held on File is Correct
Your credit profile is only as good as the companies that create them. Companies and agencies make mistakes! It is well worth checking that your associated others (i.e. people that you have joint financial interests with) are correct and that previous addresses, accounts, contracts and late payments all belong to you.
Identify Problematic Areas
Credit reports and especially scoring systems can show where you have dropped points. This may be something as simple as forgetting to register on the electoral role, late payment history or legal issues.
Check Payment History
This is twofold – you can check that your payments are being reported correctly by the company as well as check how much you have been paying. This is quite a neat way of establishing payment history and can prove a worthwhile resource when negotiating a deal. For example, if you have been with the same mobile phone service provider for a number of years, you can very quickly identify how much you have spent and for how long and therefore be in a better position to negotiate a new deal
Monitor Profile Searches
Every time somebody accesses your credit file, it is noted. You can check that these were authorized checks and can request for them to be removed if not. It doesn’t look good to have lots of inquiries noted on your account as it suggests to other lenders that you have been applying for multiple financial services.
It is Free!
There are only a select few agencies with the capability of giving you a report. I personally use Credit Expert from Experian – they give you a 30 day free trial (providing that you remember to cancel it) and offer a lot of advanced functionality. They also have a sample report available for preview. Providing that you cancel within the first 30 days, you won’t pay a penny! If you need to check your score again (6 months down the line) then you can simply sign up for a trial at one of the other agencies. Experian’s service is available worldwide.
I have checked mine three times and have yet to pay…
PS I want to be open about the above Link being an affiliate link. If you click it and end up viewing your report I will be paid a small commission. image credit – smartmoneychicks
I try and check my credit once a year. You never know when they might get something wrong or when someone has taken advantage of you.
Sean @ One Smart Dollar recently posted..The Tax Effect of Earning More Money
You are a great role-model Sean 😀 – now to convince billions of others!!
savvyscot recently posted..5 Reasons To Check Your Credit Score Today!
Great points! I try to check ours at least once a year if not more. I am a Jr, so there have been several times that my Dad’s information has shown up on my credit report. It usually is no big deal to get it corrected, but it can be a hassle.
John S @ Frugal Rules recently posted..My Dance With Credit Card Debt (And How I Got Out of it)
That is a great point John. Something that is not really as common in the UK as it is over the pond 😉 – Have you had any issues having things removed/changed?
savvyscot recently posted..5 Reasons To Check Your Credit Score Today!
Not usually. I usually just have to send a letter stating that I am not my Dad and it takes a few months to be fixed.
John S @ Frugal Rules recently posted..4 Simple Ways to Limit Losses in Stock Investing
Well at least the system works. I have heard stories about it taking over a year to have anything changed on your credit file in the UK!
savvyscot recently posted..Wake Up Or Get Wiped Out!
A credit report is an important tool just like other reports. (can i say like a report card? monitoring of a child progress in school) In a credit report were also monitoring if all the information posted are correct and from there we have to take action if there are corrections to be make. We should act as early as possible to report any errors posted as to avoid inconveniences in future. Thanks for posting this. It will be good reminder for everybody.